Directive - World Index Growth and Income Fund Inc. (2011-08-15)

Summary

This is an enforcement directive issued by the BVI Financial Services Commission under section 40(1)(b) of the Financial Services Commission Act, 2001, directed at a group of investment funds managed by Castlestone Management Incorporated, including World Index Growth and Income Fund Inc. The directive imposes ongoing reporting, internal control, and payment restriction requirements on the named funds.

• Weekly reporting: The funds must provide the Commission, on a weekly basis, full details of their activities.
• Internal controls proposal: The funds must submit to the Commission a proposal to implement more robust internal controls.
• Payment restrictions: The funds must refrain from paying any fees or expenses without the Commission's prior written consent, except for fees relating to fund administration, brokerage, custody, and audit and legal services.

The directive names a list of affected Castlestone-managed funds (including Aliquot Agriculture Fund Inc., Global Property Growth and Income REITS Fund Inc., Porcupine Absolute Return Fund Inc., and others) alongside World Index Growth and Income Fund Inc. The matter is tracked under reference INV0811/092.

Key obligations

• Provide the Commission with full details of the fund's activities on a weekly basis.
• Submit a proposal to the Commission for implementing more robust internal controls.
• Refrain from making any payment of fees or expenses without the Commission's prior written consent, except for fees relating to fund administration, brokerage, custody, audit and legal services.

Applies to

investment funds, mutual funds under management of Castlestone Management Incorporated

Deadlines

• weekly: Funds must report full details of their activities to the Commission on a weekly basis.